FxWirePro: EUR/AUD drifts lower , could be on verge of a bigger drop

• EUR/AUD initially gained  on Tuesday but gave up ground  after data showed Euro zone inflation eased last month.

• Consumer inflation in the 20 nations sharing the euro currency slowed to 2.5% in June from 2.6% a month earlier, in line with expectations in a   poll of economists.

• The euro   erased Monday’s gains against the Australian dollar , the pair was last down  at 0.08% at  1.6114  

• Technical signals show the pair could lose more ground in the short-term as RSI is at 43 bearish, daily momentum studies 9, 10 and 11 DMAs are trending down.

• Immediate resistance is located at 1.6155 ( 38.2%fib), a close above will push the pair towards 1.6205 (23.6%fib).

• Support is seen at 1.6113(50%fib) and break below could take the pair towards 1.6064 (61.8%fib).
Recommendation: Good to sell around 1.6120, with stop loss of 1.6330 and target price of 1.6040.